SOURCE: Meritage Hospitality Group Inc.

Meritage Hospitality Group Inc.

May 16, 2012 10:11 ET

Meritage Hospitality Approves Special Dividend; Announces Results of 2012 Annual Shareholder Meeting

GRAND RAPIDS, MI--(Marketwire - May 16, 2012) - Meritage Hospitality Group, Inc. (OTCQX: MHGU) (PINKSHEETS: MHGU), one of the nation's premier restaurant operators today announced that the Company's Board of Directors approved a special dividend of $0.01 per share at the May 15, 2012 Board of Directors Meeting. The dividend is payable on July 1, 2012 to shareholders of record on June 15, 2012.

This dividend represents more than a token of appreciation and is consistent with the Company's culture to reward earned success. Over the past six years, the Company has operated under an extraordinary cost burden of the Michigan Business Tax. This year the tax was eliminated by our new Governor and Michigan Legislature. "Our management team and 2,800 employees have worked hard to grow the Company during this difficult time in Michigan. Going forward, we want to make sure that Meritage is a rewarding investment for all of our shareholders through a sustainable appreciation in the intrinsic value of the business," stated CEO, Robert E. Schermer, Jr.

At the Annual Shareholder Meeting, the Company's shareholders elected six directors: James P. Bishop, Duane F. Kluting, Joseph L. Maggini, Robert E. Schermer, Sr., Robert E. Schermer, Jr., and Peter D. Wierenga. Each director will serve until the 2013 Annual Shareholders' Meeting.

Also discussed at the Annual Shareholder Meeting:

  • 2012 Financial Targets
    • Sales growth of 10% to 15%
    • Income from Operations growth of 20% to 25%
    • Net Income growth of 20% to 25%
    • EBITDA growth of 20% to 25%

  • The Company reiterated its operating plan for 150 restaurants in operation by 2015, consisting of 140 Wendy's and 10 Twisted Rooster restaurants. The Wendy's system under new leadership of Emil Brolick remains focused on exercising brand revitalization and facility reinvestment termed "image activation" aimed to enhance the entire customer experience in Wendy's restaurants, including store ambiance, quality of food and higher service standards.

SAFE HARBOR STATEMENT

Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor Statement at http://www.meritagehospitality.com.